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Your Money

News/Business. Christine Romans breaks down the financial news of the week. New.

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CNN

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00:31:00

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TOPIC FREQUENCY

Eliot Spitzer 5, Spitzer 3, Christine 3, Walmart 3, New York 3, Usaa 3, Underarm 2, George Zimmerman 2, Steven 2, Cnn 2, Neutrogena 2, Sanford 1, Tempur-ergo 1, Florida 1, Georgia 1, Fort Benning 1, America 1, Us 1, Christina 1, John Boehner 1,
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  CNN    Your Money    News/Business. Christine Romans breaks  
   down the financial news of the week. New.  

    July 13, 2013
    6:30 - 7:01am PDT  

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your money." eliot spitzer told me he expect he will get a fair hearing. he admitted to spending thousands of dollars on prostitutes. admissions that left his political career in taters. late night comedians are not waiting to have their say. >> eliot spitzer, and you remember him, he was caught freaking prostitutes several years ago is running for office again in new york. his campaign slogan is spitzer creating jobs by the hour. >> they never forget headlines like these, but five years later will they for give? >> i think five years is long enough for me to go to the public and ask them to for give. will they? i don't want to protect. just as i would never predict a jury verdict, i never predicted elections and i don't want to predict what the public will do, and i asked for it and if the public is willing i want to
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serve. that's the most i can ask for and if i get that opportunity i will be happy. >> there's also a feeling, in new york and elsewhere, that you had your chance as governor of new york, and you had your chance and you blew it. why do you deserve another trust for another chance? >> we accomplished an enormous amount, not only when i was attorney general. we did not raise taxes. we performed health care and put in place and created the stem cell research fund, and reform and unemployment. >> they talk about, yes, as attorney general you prosecuted crime and prostitution rings and as governor, you know, you lost your job, and you lost your job because of hypocrisy. >> no, i resigned because i believe it was the appropriate way to say i appreciate what accountability is all about, which is something that i spoke about and i believe it. five years later, i am ready to go to the public and say here is the entirety of the record, here
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is the totality of the record. i think i can serve once more, and i am ready to serve if you want to bring me back. >> you were known as the sheriff of wall street. >> right. >> you are talking about now running money for a pension fund, and you don't have a lot of friends on wall street. >> let me draw a distinction. there's folks that don't like me, and this is not personal, and i would get along fine if they wanted to sit down and have a cup of coffee, and there's a much larger universe that says you are right. they understand what happened between 2006 and 2010. this false bubble that was inflighted that collapsed, and they understand that. so we have to learn and move forward. i think, yes, there are some folks that are edgie and will say critical things about me, and i get that, but there's a
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larger universe of people that appreciate what i was trying to do even though they didn't want to do it at time was make the markets work and have integrity. >> this was the eliot spitzer i interviewed way before 2008, and this is the eliot spitzer, the sheriff of wall street, and you were pretty the most difficult rebranding i have ever seen. what is your strategy? >> the strategy is to sit down and answer questions, and some of them are tough. i don't shy away from them. i will look the public in the eye and say here is what i have done that is good. and here are the peaks i have had that are higher than many gets to enjoy, and the valleys i have been in more than what most people suffer through, and i recommend the peaks more than the valleys. >> i heard a little bit of your conversation with your dad, and you don't poll quite as well with women. and that's kind of a paradox. three daughters, you know, and yet women look at you different
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than male voters do? >> i get that and understand it. life is full of paradoxes. life is full of tensions that are hard to understand. you know, i think that when people get to know me better, they hopefully like me a bit more than the caricature that was out there, the tough guy and prosecuting people, and that came from the job as attorney general, and then my personal behavior that led to the resignation. it's not easy but it's worth it. >> what keeps you up at night as you try to get back in? what is your worst fear here? >> my worst fear is it will have a negative impact on my daughters, and the rest of my family, my wife, and then losing. people come first. >> you have had some tough interviews and tough questions and you have had tough headlines. how does that feel? do you have armor that you put on or do you say i made my bed
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and i will lie in it? >> first, you have to accept it. i made the decision to get in. i have skin as thick as a raoeu tphaus russ has. >> it has to hurt? >> yeah, sure it does. the pain sometimes teaches you, and "b," the public has a for giving nature, and it has come through a bit in the poll where people are saying -- >> did that poll surprise you? >> a little bit. spitzer says he expect more tough headlines in the weeks to come, and it's not a chance at redemption. he already cleared the first hurdle collecting more than 27,000 signatures. may sound like a big demotion for somebody that once occupied the governor's mansion, but it would put spitzer in charge of the city's finances. he says he would be an activist
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investor forcing changes on biggest companies, the job he started to do as the attorney general. visit our blog at cnn.com/yo cnn.com/yourmoney. bushing back part of obama care. could the delay of the employer mandate mean big problems for the signature law? all this produce from walmart and secretly served it up in the heart of peach country. it's a fresh-over. we want you to eat some peaches and tell us wh you think.
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they're really juicy. it must have just come from the farm. this right here is ideal for me. walmart works directly with growers to get you the best quality produce they've ever had. what would you do if i told you all this produce is from walmart? wow! is it really? (laughter) find fresh peaches and all your quality produce. backed by our 100% money back guarantee. walmart. trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms;
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the president warned there would be hiccups with obama care, and now they pushed back the employer mandate by a year telling businesses they don't have to provide health care to their employees until 2015. to some, that's no hiccup. it's more like a big old rude belch, and it could re-write the playbook for the 2014 mid-term elections. the presidential punt on obama care and the legacy on the line. >> anytime you are implementing something big, there will be
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people nervous and anxious. >> now that anxiety is coming from the very champions of health care reform, and that presidential punt, a key provision mandating businesses with 50 or more employees to provide insurance has been pushed back to 2015. >> it's better to do the delay and get it right than not do the delay and get it wrong. >> the administration says it is committed to getting it right, and republicans say it was doomed from the start. >> i don't know how you can't conclude this was not a total fiasco. >> the editorial writer at the "wall street journal," and he used the word fiasco to talk about health care, and then the left leaning thick take, steven, you think obama care is a jobs killer and you said it for a long time. do you think the move by the administration is vin tkau
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indication? >> by the way, christina, it's true that i think that obama care is a fiasco, but i agree with the president, i do think our health insurance system in the country needs a total overhaul, it's just not this one. the implementation of obama care i think is a bit of a political decisi decision. these are very important mid-term election with the house and senate in play. republicans think they could take the senate, and democrats are hoping they can take the house. and by delaying this until after the election, i think democrats are actually being honest that this is not really a very popular bill with the public as they hoped that it would be, and by delaying this, some of the most unpopular parts are put off until after the election, and this is not an issue in the 2014 elections, it certainly won't be one in 2016, which is bigger
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than the mid-term. >> this is not getting people elected but it's about getting people covered, by getting health insurance out there and health coverage to people that don't have it right now. does the president moving this forward, does he get any closer to that goal or is he pushing it further away? >> doesn't change at all. it's a relatively minor prevision in the act, and the congressional budget office assumed this would not be in place so they did not have to change their projections at all. the main thing that happens is the changes go into operation, and what that will mean is every person in the country regardless of the health care condition will be able to get affordable coverage. >> do you think there is any chance they could move the individual mandate forward, too? now they are giving the businesses abreak, and individual workers, it's up to you? >> no, it's very unlikely they are going to do that. let me just say, this was a very peculiar provision. the mandate for employers
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deepeneded on the family income for their workers, and i have no idea what people earn. it's a very strange position. it was a result of the politics through which the bill was passed. it's not surprising to me they decided to put it off a year, and it's very hard to implement. >> i think one of the main motivations for putting this off was the fact that as we have talked about in this show, christine, is there are negative employment implications to this, unquestionably, employers are going to hold back phoeuplt to less than 50 workers, and we are seeing initial signs of cutting back on hours worked, and that's very harmful especially to the lowest income workers in the country. now, the other point that dean made about covering people who don't have insurance. i think at this point, christine, both republicans and democrats agree that any system we go to is going to cover the vast majority of americans, and we are going to have a system where people don't go without health insurance, and the
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congressional budget office that dean just mentioned they indicate after ten years of implementation of the law, we are still going to have 20 million to 30 million uninsured people, so it doesn't accomplish that goal, christine. >> most uninsured people are immigrants, and i would be happy to have covered, and president obama gave in on that. and in terms of the job killer story, this is one story i am happy president obama did this. we have people running around saying job killer, and i think they are wound up and have to say that ten times an our hour or something, and we are going to see a high are boom because this provision doesn't take affect. it's a joke, 95% of large employers already cover workers, and so the idea of it having a massive job killing, it's silly. maybe steve will stop saying it. >> it's not just me saying this, though. >> believe me, i know.
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>> economist run the numbers, and you know -- >> yeah, i know, but it's not economists, it's employers saying it, dean. it's employers that run small businesses that run restaurants and retailers, and they are the ones saying i am going to have to cut back on my hours. you don't have to believe me about this. >> i don't believe them. they have an interest in saying that steve, you know that. and i look at the data, and it does not appear in the data, and we will get a chance to test it and we won't have to argue, steve. >> we had a big pickup in the last job reports. >> some are mad because they spent several thousand dollars on consultants what to do. last word to steven, house speaker john boehner called the delay outrageous. listen to this. >> the idea that we are going to give big businesses a break, but punish small businesses and
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family, and we will have another vote, count on it. >> the house already voted 37 times. 37 times to repeal obama care. is the 38th time going to make any difference? >> no. it isn't. and look, i am with you. the republicans made their point that they are against this. what i would like to see is them make some kind of defining some parts of obama care, and go after some of the most unpopular parts. >> we are going to be talking about obama care for years to come, guys. thank you so much. nice to see both of you today. thank you so much. coming up, more on the obama care delay, delay, a punt, a dropped pass or a flat out penalty? the president delays a major component of the health care law. small business now makes a call on the play next. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation.
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dropped pass or a flat out
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whiplash. that's what some business owners say they're feeling now that the president has delayed a key part of obama care. the administration has pushed back the employer mandate by one year. businesses don't have to provide health care to their employees until 2015 now. you know, you talk to businesses about the delay, and what's their reaction? >> well, it's obviously relief among some businesses, but there is a feeling this sort of prolongs the inevitable. some businesses are saying we already made changes. this delay is a little unfair. i spoke to one business owner
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who said, listen, when all is said and done i make about $1 million in revenue bimy profit margins are 4%. i take home about $40,000 to my wife and kids. how am i supposed to be able to afford health care to all my employees? >> supposed to be the affordable health care act. there's nothing affordable about it. >> reporter: george owns three ihops but says obama care will pancake his profits. >> frankly, there's people that are going to go out of business over this. >> reporter: now a one-year delay means that businesses with 50 or more full-time workers don't have to offer health insurance until 2015. one year later than planned. >> this stay, giving us a year, is an opportunity to bring in some other changes in the reg lace. >> reporter: the ceo of fat burger which has 75 u.s. franchises agrees. >> a delay is better than nothing but we really need to improve the law. small business is feeling the whiplash effect of being a moving target. >> reporter: both men support legislation in congress to change how the law defines a
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full-time worker. under obama care it's 30 hours a week. they say it should be 40 or business owners will be forced to cut hours and split workers between different franchises. >> i have seen them start to prepare for job sharing and job share something bad. managing around a 30-hour workweek is ridiculous. >> we will end up cutting back hours, increasing prices. $5.49 now for a full stack of pancakes and probably look at $7. >> reporter: only 3% of america's small businesses are affected by this part of obama care. the other 97% have fewer than 50 workers, but with 150 employees, george says the costs for him are steep. >> i don't believe i would be able to get away with less than $200,000 in health care costs. >> reporter: what would that mean for your profits? >> there wouldn't be profits. >> reporter: he said the health care law delayed or not has put his expansion plans on hold and
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layoffs are possible. >> who do you tell to go home, who do you tell not to be here. what do i tell my employees when i have to lock the front door when i can't afford to buy the health care? >> reporter: health care is something both men say workers should have. >> everyone should have coverage but there is a cost to it and we need to be equal about it. >> i would love to have all my employees to have full health care with dental, paid vacation for two weeks. it's not in the cards. >> what's interesting is the owner of those ihops said he polled 150 of his workers and he asked them, if i gave you guys health insurance, which one of you would take it? he said he only got two 1307b . responses. if you're only making $10 or $12 an hour, if you don't have a family, then -- >> the small businesses have until 2015 now to accommodate this. frankly, there are some small business owners who are angry because they've spent a lot of money on accountants and lawyers
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to figure out how to comply and now they have another year of uncertainty. for the individual workers they can go to exchanges this fall to buy health insurance or remain uninsured for another year. >> individuals who would have gotten health insurance through these businesses now have to go out and get it on their own or pay a fine. there was a keconcern this sortf shifts the burden from the employers to the workers and is that really fair? >> thanks. up next, stocks are up but the global economy is slowing. what that means for your money next. in the heartpeach country. it's a fresh-over. we want you to eat some peaches and tell us what you think. they're really juicy. it must have just come from the farm. this right here is ideal for me. walmart works directly with growers to get you the best quality produce they've ever had. what would you do if i told you all this produce is from walmart? wow! is it really? (laughter) find fresh peaches and all your quality produce. backed by our 100% money back guarantee. walmart.
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another week, another record high for stocks, but is that bull market getting tired? experts surveyed by cnn money say stocks will maintain the double digit gains in the second half of the year but don't expect another rally. that's not all. give me one minute on the clock. it's money time. you won't need an ebook to read a good conspiracy on the beach this summer. a judge ruled that apple conspired against amazon with a group of major publishers to fix the price of ebooks. that meant you paid more even if you weren't using an apple ipad to read your ebook. employees at the irs may not have to worry about paying taxes on their bonuses this year. that's because there won't be any bonuses if the new boss gets his way. he blames it on cost cutting measures. consumers are learning the lessons of financial discipline. credit card delinquencies fell
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to the lowest levels since the 1990s. unfortunately, living within your means probably means you won't be buying a mega yacht. the world's largest yacht is shrouded in secrecy with the buyer not public and the price tag thought to be more than half a billion dollars. twinkies is back from bankruptcy. it's built to last with a shelf life of 45 days. the federal reserve is looking for any sign of economic strength so it can pull back its historic stimulus. that means every piece of economic data is getting heightened scrutiny on wall street but there are also some unconventional ways to read this economy. let's forget about the monthly jobs report, forget about gross domestic product and the consumer price index. check out these economic readings. what do shark attacks, hot waitresses, and men's underwear have in common? well, they're economic indicators, of course. why men's underwear? the theory said to count alan
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greenspan, undies are the first thing men stop buying when times are tough. so if sales bottom out, there goes the economy. this chart shows us skivvies' recovery. the hemline index has been around since the 1920s. 9 shorter the skirt, the better the economy. two dutch economists studied it. their conclusion, hem lines can't predict the economy. today's maxi dresses are perhaps signs of a fanl cinancial crisi hangover. ♪ connie francis only had part of the story. lipstick may tell a tale on the economy. this indicator says that when money is tight, women indulge in small luxuries, but lipstick sales fell during the last recession so maybe we kiss this indicator good-bye. and from lips to jaws.
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in the movie amity island was packed and according to the shark attack indicator, that's a sign of a strong economy. more people vacationing means more people in the water and more shark attacks. since the end of the recession the numbers have been trending upwards. then there's the hot waitress index illustrated by the show "two broke girls." >> please, i really need this job. >> the theory goes the hotter your waitress, the worse the economy. why? because in boom times beautiful women are more likely to work at product reps and other jobs where hotness helps. ridiculous? yes. but it gets worse. sugar daddy.com surveys its clients on the economy. it's a daty site that pairing wealthy men and women with attractive sugar babies. in a survey those daddies are predicting a downturn. if they stop buying themselves underwear, we should really be worried. >> do you have an economic indicator i have not thought of?
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let me know @christineromanscnn. for more of my interview with eliot spitzer. until then find me online. that's it for me. welcome, everybody. good morning and welcome to cnn's continuing coverage on verdict watch here for george zimmerman. you're looking at live pictures of the courthouse in sanford, florida. that's where the jury is trying to agree on george zimmerman's fate. the jury has been deliberating just over 4 1/2 hours. so we'll be taking it to you. this is our special coverage, of course. the zimmerman trial, cnn has been following this from the beginning. official on day two of verdict watch. good morning to everybody. i'm chris cuomo. >> i'm kate bolduan. welcome to our viewers all over the country. >> they are hard at work. they started at 9:00 this morning. last night they ended it at

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